Bob and Bill are CPAs and partners in Smith and Toppers LLC, a CPA firm, and who are currently auditing Pine and Oak Lumber Company. The owners of Pine and Oak are considering selling the company which they believe to be worth about 2.5 million. Bill and Bob discuss problems with the findings of the audit over lunch at a local cafe and express their concerns that the company is seriously overvalued by approximately $500,000.

Lucy Snopes, Vice President of Commercial Loans at Home Town Bank, is sitting at a table next to Bob and Bill and overhears their conversation. Upon returning to the bank after lunch, Lucy immediately freezes Pine and Oaks' outstanding line of credit, causing Pine and Oak to become unable to order new lumber and having to cancel several contracts for lumber delivery. The amount of loss due to the need to cancel the contracts is $500,000 and the loss of future business opportunities is significant.

That same afternoon and after lunch, Bob and Bill discovered the discrepancy between the valuation and the audit numbers was due to a bookeeping error in Pine and Oaks books. However, it took six weeks to convince Lucy Snopes and Home Town Bank to lift the freeze and reinstate the line of credit so the lumber company could place additional orders.

Explain whether Bill and Bob have breached any legal or ethical duty to Pine and Oak. Also, are they responsible for any losses that occur because of the freeze on the company's ability to order inventory? Does Lucy Snopes' actions/reaction to overhearing Bill and Bob's converation create of any legal or ethical issues?